Germany Energy Storage Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Market Overview

The energy storage market in Germany is expected to witness a CAGR of more than 10% during the forecast period. Factors, such as the increasing share of renewables in the electricity generation mix, a decline in the cost of storage batteries and solar photovoltaic panels, supportive government policies like low-interest rates on loans, and investment grants on battery systems, are driving the Germany energy storage market. On the other hand, the problem of creating adequate and intelligent power grids across the country to harness and store the growing renewable energy is still a challenge that is expected to hinder the growth of the market studied.

The primary driver of battery storage in the country is the sharp price decline of lithium-ion batteries due to their extensive use in consumer electronics and the increasing number of electric cars.

There are over 209 colocation data centers in 40 areas in Germany that use lead-acid batteries, which are the commonly used energy storage systems in data centers. Also, Germany is planning to install 30 GW offshore wind energy turbines that will require large-scale energy storage systems, creating a vast opportunity for companies in the coming years.

Several public and private initiatives in the country are cooperating for the development of energy storage technologies. The federal government is making PV battery system investment very attractive through the provision of unique incentives, including low-interest rates on loans and investment grants.

Scope of the report

The Germany energy storage market report includes:

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Key Market Trends

Battery Systems for Storage of Renewable Energy to Witness Significant Growth

• The deployment of the battery energy storage system is anticipated to increase in the coming years, due to the changes in the power sector. A seven-fold increase in large battery storage from 54 MW in 2016 to 371 MW in 2018 was witnessed.
• With declining costs of lithium-ion batteries, the demand for batteries registered a substantial rise both for residential and commercial use, especially in the electronics industry and vehicle market. Battery costs have more than halved in the country, and this trend is expected to continue in the coming years.
• In June 2018, Germany became the host to Europe’s largest battery energy storage system, of 50 MWh capacity. On the other hand, owing to the fall in the PV system and battery costs, the market for energy storage gathered pace in the country. By mid-2018, around 100,000 households and commercial operations had already installed PV battery systems in the country.
• With more than 45,000 MW solar capacity and more than 60,000 wind energy capacity in 2018, the requirement of a storage system is expected to thrive in the forecast period.

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